Tuesday, February 9, 2016

ITIL - What is Service ?

ITIL Self study Notes 1

ITIL is framework for ServiceManagement, to understand ITIL first we have to understand Service management.

INTRODUCTION

Before we discuss about what Service Management and ITIL are, and why they a re so important to a service provider, we need to understand what service is in sense of ITIL service management and in which ways Service Management can support enterprises to deliver and manage these services.

Definition of service in ITIL Terminology:

SERVICE
"A service is a means of delivering value to customers by facilitating outcomes
that customers want to achieve without the ownership of specific costs and risks."

"Service is a means of delivering value to customers by achieving customer's desired results while working within given constraints."

The objectives that customers want to achieve are the outcomes why they purchase or use a service.

It could be any specific service or services under specific business objectives.

For an example: We withdraw money from any banks ATM, Bank is a service provider we being customer are an user of service, we do not take any ownership of ATM center and not at all concerned about what security needed for keeping ATM center risk free(ownership of Service provider), but only concern which remain in our mind is to withdrawal of money in easy, faster and efficient way without any failure(expectations of customers).

Value of service

Service providers responsibilities are to facilitate customers with offered services, and the value of service directly depends upon how well a service providers fulfill offered services and how well they takes care of ownerships they have taken to provide services.

In this process service provider is responsible for managing business cost
with. The value of the service to the customer is directly dependent on how well a service facilitates these outcomes.
Although the enterprise retains responsibility for managing the overall costs of the business, they often wish to devolve responsibility for owning and managing defined aspects to an internal or external entity that has acknowledged expertisein the area.

Take an example of an enterprise who takes care of all the cost required for buying a service. Enterprises buy services because they do not have expertise or time or resources(overloaded sometimes), so they outsource their work to other service provider to manage it, how well the service provider works on it and brings benefits to enterprise is a value of service, where enterprise saves or earn money from management by service provider.

Basic concept that applies to the purchase of any service, let's consider example of financial planning, Customet recognise that he don’t have the required skills, expertise and time or lack of intrest toward doing it and management of individual investments that are required. So the customer appoints
the  professional manager to get it served. If service provider's service is worth profit, and profit is value of service.

Traditional approach was that the service provider used to focus only on their offered services, technologies, products, supply etc. But they never checked back how it is impacting their customers in terms of expectations, quality, affordability and profitability, but it has changed now and its two ways approach with the help of service management.

Difference between service and product:

Products

  1. Products are tangible one can touch and feel it.
  2. Products can be stored and used whenever required.
  3. Product is sole creation of manufacturer.
  4. Product can not be produced and consumed at same time.
  5. Products are consistent, that means they will remain same every time you buy specific product of specific brand for years.

Services

  1. Service is not tangible but it is a value to desired result for which consumer paid for.
  2. Service can not be stored it has agreed timeframe in which customer can demand for it.
  3. Service generates by interaction between service provider and customer 
  4. Service can be produced and used at same time.
  5. Service are inconsistent and they totally depends upon situations.

Now as we understood what is service and service value, so we are ready to proceed to next chapter where we will understand about service management.



No comments:

Post a Comment